New contract allows more connections on congested power grid

GIGA Storage and grid operator TenneT have signed the first ever time-limited connection and transmission agreement. This new contract allows for more efficient use of the existing electricity grid. This new agreement gives GIGA Storage the right to take electricity from the grid or feed it back in at least 85% of the time.

The new type of contract was developed as part of the National Grid Congestion Action Program and allows GIGA Storage to connect its battery project, GIGA Leopard with a capacity of 300 MW and storage capacity of up to 1,200 MWh, in Delfzijl to the electricity grid, which otherwise would not have been possible.

High discount

This new form of contract makes it possible to use scarce space on the grid more efficiently. This is necessary because congestion on the electricity grid now means that connections with full and fixed transmission charges are not always possible. At the same time, customers with time-limited contracts can receive a discount of up to 65% on transmission tariffs. Minister Hermans of Climate and Green Growth said, "We are all working very hard to expand the electricity grid faster, and we also need to use the grid smarter. Thanks to this new type of contract and good cooperation, it will be possible to make optimal use of the space on the power grid that is still available outside 'rush hour'. Moreover, we can use the renewable electricity when there is less sun and wind. I hope this is a breakthrough and other companies that can do so will also consider a flexible contract."

Available capacity

The agreement with GIGA Storage actually cuts both ways, as the batteries store power that can be used later. If there is a lot of wind or the sun shines heavily, huge batteries temporarily store the renewable electricity generated. That green power is used when there is a shortage to maintain balance on the power grid and ensure security of supply. Batteries thus reduce our dependence on coal and gas plants when there is little or no solar and wind power. "This agreement with GIGA Storage is a crucial step in improving the efficiency and reliability of our current electricity grid," said TenneT CEO Manon van Beek. "With this time-based form of contract we can make better use of the available capacity and connect more customers who use the grid outside of peak hours."

More stable energy supply

The battery helps keep the power grid stable by providing additional power when needed. This can be cheaper and more efficient than turning on traditional power plants. The battery also stores electricity when prices are low so it can be used later when demand increases. As a result, green power is better utilized and energy remains affordable. "With this new contract we show that by working together we can come to very good solutions. By listening carefully to each other, we really take the energy transition a step forward and make a significant contribution to a more sustainable and stable energy supply," said Ruud Nijs, CEO GIGA Storage. The new agreement with TenneT will take effect on October 1, 2025.

New alternative contracts

The Consumer & Market Authority (ACM) gave the green light to time-based and time-block contracts in the spring of 2024. Time-based contracts enable connection of wholesale customers to the electricity grid, where the connection is available at least 85% of the time. This type of contract is only for large business customers of TenneT. They pay a reduced transmission tariff and possibly make room for other parties on the waiting list. These new contract types are particularly interesting for companies without 24/7 business processes and are offered by grid operators as an alternative to the existing, fixed transmission right.